Capital Investment Subsidy for Establishment of New Hotel or Mini Resort of Standard Category

The Tourism Department of the Government of Madhya Pradesh has introduced the Capital Investment Subsidy for Establishment of New Hotel or Mini Resort of Standard Category. This scheme is intended to strengthen tourism infrastructure and encourage investment in the hospitality sector. Given the state's cultural heritage, wildlife, and natural attractions, the initiative seeks to draw entrepreneurs into setting up new hotels and mini resorts that meet a standard category. By offering a substantial capital subsidy, the programme aims to ease the financial load on investors and support the development of quality accommodation throughout Madhya Pradesh. The scheme is limited to new establishments, so that fresh infrastructure directly adds to the state's tourist capacity and experience.

The programme is expected to contribute to economic growth and generate employment, particularly for local residents. Through incentives for building and running new hospitality units, the government hopes to position Madhya Pradesh as a more appealing choice for travellers from India and abroad. The Madhya Pradesh Tourism Board manages the scheme, handling applications and disbursals while ensuring adherence to the stated guidelines and promoting sustainable tourism growth. The emphasis on fixed capital investment reflects the state's focus on durable, long-term infrastructure.

The application process consists of an initial online registration followed by a separate subsidy application, both handled through the Invest Portal of the Madhya Pradesh Government.

• Step 1: Register on the Portal (Vendor / Investor): Go to the Invest Portal (sws.invest.mp.gov.in) and register as a 'Vendor / Investor'. This portal serves as a unified platform for investor-related services. Provide basic details such as 'Type of Organisation' (for instance, Public Limited Company, Private Limited, LLP, Proprietorship Firm, Partnership Firm, Cooperative, Trust, FPO, or Individual), 'Firm/Company Name', and 'Authorized Person Name'.
• Step 2: Provide Contact Details: Enter a working email address and mobile number. The application number, user ID, and password will be sent to these contact points. Check that emails from the portal do not land in the spam folder.
• Step 3: Submit Basic Registration: Complete and submit the basic registration form. No fee is charged at this stage. Once submitted, a user ID and password will be generated and sent to the registered mobile number for login.
• Step 4: Complete Profile and Full Registration: Log in with the credentials received. Updating the profile is a mandatory step after the first login, and full registration must be finished before applying for any scheme.
• Step 5: Obtain Permissions and Start Operations: Following full registration, apply for and obtain all required permissions through the online single-window system within the specified time limits. Construction of the hotel or resort must be finished, and the minimum capital expenditure of ₹2,00,00,000/- must be met. After construction, begin commercial operations and keep evidence of operation, such as the first lodging or catering bill.
• Step 6: File the Subsidy Application: Submit the capital subsidy application online within one year of the date commercial operations commence. Upload all necessary documents, including proof of capital expenditure, evidence of operational start, and compliance certificates, in the required file formats (for example, JPG for photographs).

The Madhya Pradesh Tourism Department or Board carries out a detailed check before any Capital Investment Subsidy is released. After an online application and its supporting documents are submitted, the department reviews the claim, which involves confirming the capital expenditure actually incurred, verifying that commercial operations have begun, checking that the employment condition (70% of staff being Madhya Pradesh residents) is met, and ensuring facility standards such as the required number of air-conditioned rooms are in place. Once this verification is completed and the claim is approved, the subsidy amount is paid out to the qualifying unit.